Limited Liability Partnership Registration
Register your LLP in India - Easy & Fast
Within 10 working days
An LLP is a type of organization you can set up to run your business.
As such they need to be registered with the Ministry of Corporate Affairs (MCA) and are subject to relevant Rules and Regulations
Your Limited Liability Partnership with Targolegal
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Step 1
Obtain Digital Signature Certificate (DSC) for the partners
Step 2
Apply for Director Identification Number (DIN) for the partners
Step 3
Application for Name Approval of the proposed LLP
Step 4
Filing for Incorporation of the proposed LLP
Step 5
File Limited Liability Partnership (LLP) Agreement
Overview
Importance of Registration
Registration Conditions
Documents Required
What is an LLP ?
A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence.
Concept of “Limited Liability Partnership”
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LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
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The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
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The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
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Further, no partner is liable on account of the independent or unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
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Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.
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Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ , LLP is called a hybrid between a company and a partnership.
Overview
Importance of Registration
Registration Conditions
Documents Required
Importance Of Registration
LLP has now come up as one of the most preferred legal entities for Professionals as well as service organizations owing to the flexibility attached under the Limited Liability Partnership Act. There is flexibility with respect to the structuring of management and ownership as well as lesser number of compliances as compared to a private limited company.
Benefits of registration as an LLP
i) Personal liability of an individual partner arising from any omissions, errors, negligence or incompetence is limited to cash/kind contributions made by that partner.
ii) Reasonable Formation Costs
The cost of LLP registration is lesser compared to a private or public company.
iii) Relaxed statutory compliances
Entrepreneurs who form LLP’s often make use of relaxed statutory compliances.
iv) Relaxed auditing norms
Limited Liability Partnerships (LLP’S) are not required to audit their books of account where their annual turnover is less than INR 40 lakhs or if the contribution is less than INR 25 lakh.
v) No Minimum Capital Contribution Norms
There are no specific requirements on the minimum capital contribution by partners in an LLP. Also there are no restrictions on the number of partners forming the LLP and no limit on the maximum number of partners in an LLP.
vi) Relaxed Government Regulations
LLP has minimum compliances and government interventions. This makes it a viable option for first-time entrepreneurs looking for a good business form.
Overview
Importance of Registration
Registration Conditions
Documents Required
Registration Conditions
i) Minimum of 2 Designated Partners (Individuals or body corporate) for any LLP
ii) Minimum of two (2) Designated partners who are individuals and at least one of them should be a resident in India.
iii) Director Identification Number (DIN) for each partners
iv) Digital Signature Certificate (DSC) for each partners
v) Proposed name of the LLP
vi) Draft an LLP Agreement for proposed LLP
vii) Setting up of the registered office for the proposed LLP.
Overview
Importance of Registration
Registration Conditions
Documents Required
Documents Required
Documents Required For LLP Registration
You need to have the following set of documents before proceeding for registration:
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Self-attested PAN card copy of proposed Designated Partners
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Self-attested Address Proof of Proposed Designated Partners (Passport or Driving Licence or Voters ID or Aadhar Card)
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Self-attested Latest Bank Statement or Mobile Bill or Gas (Not older than 2 months)
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Address proof of the proposed Registered Office (electricity bill or Landline or Gas Bill and It can be a residential property) and rental agreement
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No Objection (NOC) from the person who owns the property mentioned above (we will prepare)
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2 passport size photos of proposed Designated Partners LLP Incorporation Process
Compare your options before incorporation of company
An introduction about a business or start up formation option is vital for deciding the right form of business registration.
The Companies Act, 2013 and Limited Liability Partnership Act, 2008 have brought about more business formation choices for entrepreneurs.
The key factors that influence the legal form of a business are, the nature of your business, customer’s profile (corporate, small businesses or individuals ), expected business turnover, scalability of your business idea, and future funding prospectus.
Every entrepreneur/promoter should take the effort to know about the pros and cons of these legal forms for new company registration so as to choose the best for your Company.
We at Targo Legal also offer Private Firm, LLP ,OPC registrations, and many more services that may suit your registration requirements.
Feel free to contact us for details regarding Private Limited Company Registration Cost, and to know more about, how to register a company.
Do I need a Registration?
What type of business names can I keep?
How risky is it for me?
To what extent is each member of the business liable?
Tell me the
minimum membership limit
Is foreign ownership allowed?
How much will I get taxed
What are my annual tax filing norms?
Is Annual Audit Required?
Can I convert my business into any other legal form??
Compulsory Conversion to
Private Limited Company Applicable?
LIMITED LIABILITY PARTNERSHIP
Ministry of Corporate Affairs registers an LLP business
under the Limited Liability Partnership Act, 2008.
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
“LLP” is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business’ liabilities.
Liable to the extent of their contribution (in money, in kind or in services extended)
to the LLP.
2 People
Yes
Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Annual Statement of
Accounts &
Solvency and Annual Return with the Registrar.Plus, Income Tax must be filed separately.
Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
NO
PRIVATE LIMITED
COMPANY
Yes, Ministry of Corporate Affairs registers Private limited company under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
2 People
Yes
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Private
Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus,Income
Tax must be filed separately.
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is
applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP.
Even, Public Limited Company can be converted into a Private Limited Company.
NO
PARTNERSHIP
Yes. Register with Registration of Firms
Firm can use any name that he likes, but avoiding names already trademarked is advisable
Partners will stand liable for the liabilities of the business
Unlimited liability
2 People
No
Profits get taxed at 30% plus cess and surcharge. Is applicable
if profit exceeds 1 Cr
Only Income Tax must be filed for the income of firm and partners.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
es, Partnership can be converted into a Private Limited Company or LLP.
NO
ONE PERSON COMPANY (OPC)
Yes, Ministry of Corporate Affairs registers One Person Companies under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not
similar to any registered LLP’s
or companies
OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
1 Person
NA
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
Every financial year OPC
must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking
expansion of their OPC
NO
SOLE PROPRIETORSHIP
No legal requirement to do- so.
Promoter can use any name that he likes, but avoiding names already trademarked is advisable.
Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
Unlimited liability.
1 Person
NA
Individual income tax slab of the proprietor is the basis of taxation.
Only Income Tax must be filed on the basis on proprietor’s income.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
No
Yes. If turnover exceeds 2 cr
Do I need a Registration?
What type of business names can I keep?
How risky is it for me?
To what extent is each member of the business liable?
Tell me the
minimum membership limit
Is foreign ownership allowed?
How much will I get taxed
What are my annual tax filing norms?
Is Annual Audit Required?
Can I convert my business into any other legal form??
Compulsory Conversion to
Private Limited Company Applicable?
PRIVATE LIMITED
COMPANY
Yes, Ministry of Corporate Affairs registers Private limited company under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
2 People
Yes
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Private
Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus,Income
Tax must be filed separately.
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is
applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP.
Even, Public Limited Company can be converted into a Private Limited Company.
NO
LIMITED LIABILITY PARTNERSHIP
Ministry of Corporate Affairs registers an LLP business
under the Limited Liability Partnership Act, 2008.
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLP’s
or companies
“LLP” is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business’ liabilities.
Liable to the extent of their contribution (in money, in kind or in services extended)
to the LLP.
2 People
Yes
Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
Every financial year Annual Statement of
Accounts &
Solvency and Annual Return with the Registrar.Plus, Income Tax must be filed separately.
Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
NO
PARTNERSHIP
Yes. Register with Registration of Firms
Firm can use any name that he likes, but avoiding names already trademarked is advisable
Partners will stand liable for the liabilities of the business
Unlimited liability
2 People
No
Profits get taxed at 30% plus cess and surcharge. Is applicable
if profit exceeds 1 Cr
Only Income Tax must be filed for the income of firm and partners.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
es, Partnership can be converted into a Private Limited Company or LLP.
NO
Do I need a Registration?
What type of business names can I keep?
How risky is it for me?
To what extent is each member of the business liable?
Tell me the
minimum membership limit
Is foreign ownership allowed?
How much will I get taxed
What are my annual tax filing norms?
Is Annual Audit Required?
Can I convert my business into any other legal form??
Compulsory Conversion to
Private Limited Company Applicable?
ONE PERSON COMPANY (OPC)
Yes, Ministry of Corporate Affairs registers One Person Companies under the
Companies Act, 2013
Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not
similar to any registered LLP’s
or companies
OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
Liability is limited to his/her share capital contribution.
1 Person
NA
Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
Every financial year OPC
must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking
expansion of their OPC
NO
SOLE PROPRIETORSHIP
No legal requirement to do- so.
Promoter can use any name that he likes, but avoiding names already trademarked is advisable.
Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
Unlimited liability.
1 Person
NA
Individual income tax slab of the proprietor is the basis of taxation.
Only Income Tax must be filed on the basis on proprietor’s income.
Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
No
Yes. If turnover exceeds 2 cr
FAQ
What is an LLP?
It is a partnership with the partners having limited liability. An LLP is also distinct from its partners.
What type of business is ideal for LLPs?
LLPs ideally suit partnerships, where there are relatively more numbers of partners and their liabilities, can be limited.
What are the members of an LLP called?
Members of an LLP are called Partners.
Is it difficult to get a name of my choice for my LLP?
Getting a name of your choice is easy if you follow a few basic guidelines such as, avoiding similar names of existing companies of LLPs, similar sounding names or those containing prohibited words such as Government, Bank, Exchange etc unless otherwise approved by the respective authorities.
Is it necessary for me to obtain a digital certificate?
Since documents are filed electronically, Digital Certificate (DSC) is mandatory. Once obtained, you can use this DSC for various other purposes where a digital signature is required.
What are the suffixes that apply to my business name?
“Limited Liability Partnership” or “LLP”. This suffix should be at the end of the business name.
What type of business names can be kept for an LLP?
First submit a set of names to the Registrar of Companies, then wait for approval from the Registrar. The best practice is that the names submitted need to be inoffensive, legal and not similar to any existing or registered LLP’s or companies.
Where should you register an LLP?
The Ministry of Corporate Affairs registers an LLP business under the Limited Liability Partnership Act, 2008.
Is it necessary to audit the books of accounts of an LLP?
Audit is mandatory only if the turnover of the LLP is more than Rs 40 Lakhs or Capital is more than Rs 25 Lakhs.
To what extent is each member of the business liable?
Liable to the extent of their contribution (in money, in kind or in services extended) to the LLP.
What is the minimum membership limit for an LLP?
Two persons (2).
What are the maximum membership limits for an LLP?
Unlimited number of partners.
Can the LLP’s ownership be transferred?
No
What are the LLP taxation rules that I need to know now?
Profits get taxed at 30% plus surcharge and cess are also applicable.
What are LLP’s Annual tax filing norms?
Every financial year Annual Statement of Accounts & Solvency and Annual Return is to be submitted to the Registrar. In addition Income, Tax must also be filed on the basis of income of the LLP.
Can I convert my LLP into any other legal form?
Conversion of LLP into a Company is not possible under the present regulations.
Can I bring in foreign funding?
LLPs and Private Companies can get Foreign Direct Investment (FDI) or Investment in selected sectors subject to the provisions of FEMA and FDI Regulations.
My partner is not in the same state/locality. How can the registration be then done?
You can proceed with the registration provided the other partner signs the necessary documents and get the attestation done from his/her locality.
My partner is abroad/a foreigner. How can the registration be done then?
You can proceed with the registration provided the other partner signs the necessary documents and gets the attestation done from his Country as per the Legal requirements.
Can I make my wife a partner in the LLP ? Does she need to file IT returns then?
Yes, your wife can be made a partner. Yes if the income exceeds the taxable limit, then the return needs to be filed.